Price Competition and Market COncentration: An Experimental Study

Martin Dufwenberg and Uri Gneezy

Working Papers from Uppsala - Working Paper Series

Abstract: The classical price competition model (named after Bertrand) prescribes that in equilibrium prices are equal to marginal costs. Moreover, prices do not depend on the number of competitors. Since this outcome is not in line with real-life observations, it is known as the "Bertrand Paradox". Many theoretical problems with the original model have been considered as an explanation of the paradox in the literature.

Keywords: PRICES; COMPETITION; MARKETS (search for similar items in EconPapers)
JEL-codes: D43 (search for similar items in EconPapers)
Pages: 19 pages
Date: 1998
References: Add references at CitEc
Citations: View citations in EconPapers (2)

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

Related works:
Journal Article: Price competition and market concentration: an experimental study (2000)
Working Paper: Price Competition and Market Concentration: An experimental Study (1999)
Working Paper: Price Competition and Market Concentration: An Experimental Study (1998)
Working Paper: Price competition and market concentration: An experimental study (1998)
Working Paper: Price competition and market concentration: An experimental study (1998)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:fth:uppaal:1998-08

Access Statistics for this paper

More papers in Working Papers from Uppsala - Working Paper Series UPPSALA UNIVERSITY, DEPARTMENT OF ECONOMICS, S-751 20 UPPSALA SWEDEN.. Contact information at EDIRC.
Bibliographic data for series maintained by Thomas Krichel ().